The Indian stock market witnessed a sharp decline on Tuesday, wiping out investor wealth worth ₹5 lakh crore in a single day. The Sensex plunged by 872.98 points to close at 81,186.44, while the Nifty dropped 261.55 points to settle at 24,683.90. This sudden fall came amid fresh fears around the re-emergence of the coronavirus, along with weak global signals and profit-booking.
Market sentiment turned negative due to reports of rising COVID-19 cases in some parts of the world, sparking fears of potential disruptions to economic activity. Adding to the pressure was cautious behavior from foreign investors and a surge in global bond yields, particularly in Japan and the US.
All sectors ended the day in the red, with major losses seen in auto, financial services, FMCG, metals, and pharma stocks. Companies like Zomato, Maruti Suzuki, M&M, Power Grid, and Nestle were among the top losers. Only Tata Steel, Infosys, and ITC managed to stay in the green.
The broader markets were also not spared. The Nifty Midcap 100 index fell 1.62%, and the Nifty Smallcap 100 slipped 0.94%. Weak cues from Asian markets and a downturn in US stock futures further added to investor concerns.
Experts suggest that investors are now adopting a wait-and-watch approach due to uncertainty in global markets and fear of another wave of the virus. While this may be a short-term correction, market watchers advise caution and suggest focusing on quality stocks during this volatile phase.
In summary, renewed COVID-19 worries, global economic signals, and investor caution triggered a sharp sell-off in the Indian stock market, ending the day deep in the red.